Hello Guys and Gals, apologies for the long absence the last week and a half, lets take a look at the Bitcoin vs USD.
The market reacted quite strongly after the bearish run into the lower 7k zone by recovering and testing $9200.
However the bullish trend, was short lived as price action faded away.
We failed to witness a breakout above the 10k resistance zone, which I mentioned previously is our main psychological resistance level, at this point in time.
The bears are still camping out and there is still money to made on the short side.
I drew in the blue line to show that there is a shorter term bullish trend developing in the market, higher lows. Please note that this opinion will be invalid should prices drop below the blue line.
With that said we can see that we are still in one of the down trend channels (the less evil one), should the bullish price action fail we could join the previous channel and face a possible selloff.
In my personal opinion I think the buying zone is around $8600 to $5500, the latter being the worse case scenario.
Short term support (recently found) is around $7600 – $7900, and I would expect lower prices going into the weekend should we fail to stay afloat here.
The next line of defense, which is also my medium term bullish trend line, is at $7000.
On the bullish side, should prices consolidate above $8000 – $8600, I would expect a retest of $9000 and possibly $10 000.
On the longer term I would consider going long if we witness a drop into the 6k and 5k zones.
Feel free to discuss this trade idea with me in discord. Safe trades.